Block, Inc.XYZ
Block, Inc. Fair Value Disclosure
FAIR VALUE MEASUREMENTS
The Company measures its cash equivalents, customer funds, short-term and long-term marketable debt securities, marketable equity investments, and bitcoin investment at fair value. The Company classifies these investments within Level 1 or Level 2 of the fair value hierarchy because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs.
The Company’s assets and liabilities that are measured at fair value on a recurring basis were classified as follows (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
| Cash equivalents: | |||||||||||||||||||||||||||||||||||
| Money market funds | $ | 608,807 | $ | — | $ | — | $ | 857,196 | $ | — | $ | — | |||||||||||||||||||||||
| U.S. government securities | 4,963 | — | — | 26,951 | — | — | |||||||||||||||||||||||||||||
| Commercial paper | — | 64,805 | — | — | 509 | — | |||||||||||||||||||||||||||||
| Corporate bonds | — | 276 | — | — | — | — | |||||||||||||||||||||||||||||
| Restricted Cash: | |||||||||||||||||||||||||||||||||||
| Money market funds | 293,514 | — | — | 319,800 | — | — | |||||||||||||||||||||||||||||
| Customer funds: | |||||||||||||||||||||||||||||||||||
| Money market funds | — | — | — | 4,645 | — | — | |||||||||||||||||||||||||||||
| Reverse repurchase agreement | 1,108,097 | — | — | 982,974 | — | — | |||||||||||||||||||||||||||||
| Short-term debt securities: | |||||||||||||||||||||||||||||||||||
| U.S. government securities | 344,627 | — | — | 206,785 | — | — | |||||||||||||||||||||||||||||
| Corporate bonds | — | 59,119 | — | — | 160,390 | — | |||||||||||||||||||||||||||||
| U.S. agency securities | — | 19,035 | — | — | 34,468 | — | |||||||||||||||||||||||||||||
| Commercial paper | — | 92,655 | — | — | 333 | — | |||||||||||||||||||||||||||||
| Municipal securities | — | 130 | — | — | 399 | — | |||||||||||||||||||||||||||||
| Certificates of deposit | — | 2,211 | — | — | 1,051 | — | |||||||||||||||||||||||||||||
| Long-term debt securities: | |||||||||||||||||||||||||||||||||||
| U.S. government securities | 100,467 | — | — | 223,258 | — | — | |||||||||||||||||||||||||||||
| Corporate bonds | — | 81,469 | — | — | 195,344 | — | |||||||||||||||||||||||||||||
| U.S. agency securities | — | — | — | — | 49,030 | — | |||||||||||||||||||||||||||||
| Municipal securities | — | 6,951 | — | — | 4,345 | — | |||||||||||||||||||||||||||||
| Other: | |||||||||||||||||||||||||||||||||||
Bitcoin investment | 777,515 | — | — | 792,282 | — | — | |||||||||||||||||||||||||||||
| Investment in marketable equity securities | 5,225 | — | — | 5,407 | — | — | |||||||||||||||||||||||||||||
| Total | $ | 3,243,215 | $ | 326,651 | $ | — | $ | 3,419,298 | $ | 445,869 | $ | — | |||||||||||||||||||||||
The carrying amounts of certain financial instruments, including settlements receivable, consumer receivables, accounts payable, customers payable, accrued expenses, and settlements payable, approximate their fair values due to their short-term nature. The carrying amounts of the Company's warehouse funding facilities approximate their fair values.
The Company estimates the fair value of its convertible and senior notes based on their last actively traded prices (Level 1) or market observable inputs (Level 2). The estimated fair value and carrying value of the convertible and senior notes were as follows (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Carrying Value | Fair Value (Level 2) | Carrying Value | Fair Value (Level 2) | ||||||||||||||||||||
| 2026 Senior Notes | $ | 998,827 | $ | 993,144 | $ | 996,017 | $ | 960,589 | |||||||||||||||
| 2030 Senior Notes | 1,185,533 | 1,209,528 | — | — | |||||||||||||||||||
| 2031 Senior Notes | 992,372 | 932,095 | 990,971 | 873,868 | |||||||||||||||||||
| 2032 Senior Notes | 1,977,734 | 2,057,081 | 1,975,026 | 1,999,220 | |||||||||||||||||||
| 2033 Senior Notes | 987,581 | 1,013,732 | — | — | |||||||||||||||||||
| 2025 Convertible Notes | — | — | 999,497 | 991,941 | |||||||||||||||||||
| 2026 Convertible Notes | 574,432 | 566,103 | 572,723 | 533,154 | |||||||||||||||||||
| 2027 Convertible Notes | 572,539 | 530,171 | 571,202 | 497,517 | |||||||||||||||||||
| Total | $ | 7,289,018 | $ | 7,301,854 | $ | 6,105,436 | $ | 5,856,289 | |||||||||||||||
The estimated fair value and carrying value of loans held for sale and loans held for investment were as follows (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Carrying Value | Fair Value (Level 3) | Carrying Value | Fair Value (Level 3) | ||||||||||||||||||||
| Loans held for sale | $ | 782,966 | $ | 812,658 | $ | 1,111,107 | $ | 1,112,746 | |||||||||||||||
| Loans held for investment | 3,382,957 | 3,445,631 | 365,062 | 382,542 | |||||||||||||||||||
| Total | $ | 4,165,923 | $ | 4,258,289 | $ | 1,476,169 | $ | 1,495,288 | |||||||||||||||
For the years ended December 31, 2025, 2024, and 2023, the Company recorded incremental charges for the excess of amortized cost over the fair value of the loans of $263.0 million, $290.2 million, and $111.2 million, respectively. To determine the fair value of the loans held for sale, the Company utilizes discounted cash flow valuation modeling, taking into account the probability of default and estimated timing and amounts of periodic repayments. In estimating the expected timing and amounts of the future periodic repayments for the loans outstanding, the Company considered other relevant market data in developing such estimates and assumptions. As of December 31, 2025, there were no material changes to the Company's estimates of fair value, and the Company will continue to evaluate facts and circumstances that could impact its estimates and affect its results of operations in future periods.
If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. During the years ended December 31, 2025, 2024, and 2023, the Company did not have any transfers in or out of Level 1, Level 2, or Level 3 assets or liabilities.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 27, 2017 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.